Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays...

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Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays...

Value of a Preferred Stock If a preferred stock from Ecology and Environment, Inc. (EEI) pays $6.50 in annual dividends, and the required return on the preferred stock is 6.20 percent, what's the value of the stock?

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Answer 1

Answer #1

Value of the stock = Dividend / Required return

Value of the stock = $6.50 / 0.0620

Value of the stock = $104.84

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Answer 2

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